The invention discloses externally used paste for treating rheumatic and rheumatoid arthritis and its preparation method and use. The externally used paste comprises methyl glucse sesquistearate, pentaerythritol distearate, glyceryl stearate, shea butter, cyclomethicone, polydimethylsiloxane, cetearyl alcohol, tocopheryl acetate, bisabolol, methyl salicylate, disodium EDTA, allantoin, glycerinum, jojoba wax PEG-120 ester, sodium hyaluronate, carbomer, hydroxyethylurea, trehalose, beta-glucan, D-glucosamine hydrochloride, chondroitin sulfate, dimethyl sulfone, caprylic/capric triglyceride, capsaicin, a sodium acrylate/sodium acryloyldimethyl taurate copolymer, bis(hydroxymethyl)imidazolidinyl urea, essence and distilled water. The externally used paste has good treatment effects, lasting curative effects and no side effect.